🫗Provided Liquidity
Starting Liquidity
The primary strategy involves sourcing liquidity for new chains from the founder's personal funds in the short term, as opposed to relying on DZHV liquidity pools. This approach not only enables bridging to numerous additional chains but also offers significant advantages in terms of cost-effectiveness, simplicity, and enhanced security. By minimizing reliance on external interchain frameworks and leveraging proprietary methods, the process becomes more economical, straightforward, and robust.
Locked Liquidity
In the foreseeable future, our strategy may involve a combination of V3 full and managed V3 spot positions, with the possibility of locking full positions if deemed strategically beneficial.
Brief Recap:
We've transitioned all V3 spot positions to V3 full positions, except for AVAX, leading to some surplus DZHV in the team wallet. While DZHV liquidity has seen a slight dip, native coins remain relatively stable.
For AVAX, the move involved shifting TraderJoeV2.1 spot positions to TraderJoeV1 positions.
The catch is that the team is looking at earning about half the fees with the V3 full positions. To experiment, we're testing a one-month lockup of liquidity to gauge its impact on offsetting the fee reduction and establishing trust. Depending on the outcome, we may reconsider the lockup strategy after this trial period.
Here's the added twist: prompted by valuable insights from the community, we're acknowledging the need for teams to hold a portion of tokens for operational and potential investor purposes. Given our current stash, these buybacks aim to fortify the team treasury.
So, stay tuned as we lock up liquidity for a month to assess the results. With over 35% expressing interest in locked liquidity on our telegram community chat, it's an experiment worth exploring. Occasional buybacks will also be part of the liquidity adjustment strategy based on volume and ratios.
The recommended decentralized exchanges (DEXs) for each chain are as follows:
Arbitrum : Uniswap
Avalanche : TraderJoe
Base : Uniswap
Binance Smart Chain : PancakeSwap
Ethereum : Uniswap
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